Enron Mail

From:michelle.cash@enron.com
To:hoyt.thomas@enron.com
Subject:Re: Priviliged and Confidential communication to my attorney Re:
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Date:Thu, 10 Aug 2000 17:00:00 -0700 (PDT)

Cc: melissa.laing@enron.com
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Privileged and Confidential
This email contains legal advice

Hoyt and Melissa,

I am assuming that we are discussing contract personnel who provide some sort
of services for MG/RW. It looks like there may be some key personnel we want
to employ, but that there are many whom we don't want to hire. I am not
really familiar with the specific facts here.

The question of a joint employer arises when a company treats its contract
personnel like its own -- by setting compensation, controlling their
activities, engaging in promotion/discipline/termination, etc. decisions, and
other ways in which an employer treats its own employees. So, if the plan is
to have workers doing the same thing, with one as a contractor, and one as an
employee, there could be some issues, particularly if they share a
supervisor. Unfortunately, that often is the case with contract personnel.

If there are distinctions among the various responsibilities of these workers
-- and like workers are treated similarly -- the risk may be reduced. It
is cleanest, however, to use all of these workers through the contracting
agency for a while (assume we don't want to hire them all, which is the other
alternative). Then, the company may want to make selected offers to people
who may be in a managerial role or have some other distinction from the bulk
of the contract workers.

I would like additional information on this situation before reaching a
definitive conclusion. So, let's try to discuss it. I am booked until about
11 this morning, but am available after that.

Michelle





Hoyt Thomas@ENRON
08/08/2000 04:21 PM
To: Michelle Cash/HOU/ECT@ECT
cc: Melissa Laing/LON/ECT@ECT
Subject: Priviliged and Confidential communication to my attorney Re: Henry
Bath LA

Michelle, I guess emails will get to you sooner if I remember to add you to
the addressee list! Sorry.

Hoyt
---------------------- Forwarded by Hoyt Thomas/NA/Enron on 08/08/2000 04:20
PM ---------------------------


Hoyt Thomas
08/08/2000 02:01 PM
To: Melissa Laing/LON/ECT@ECT
cc:

Subject: Priviliged and Confidential communication to my attorney Re: Henry
Bath LA

Melissa, my concern is that we may get hit with what is called a
"co-employment suit" in the US. This is where an agency employee claims that
he/she was treated like an employee, therefore he/she should get employee
benefits (vs. benefits from the agency company, which are probably weak).
Since we did a share purchase of MG, if the agency employees filed a suit
against MG claiming that they are really employees, I think that we would
have to defend it.

I am not an attorney, but I am going to send this to Michelle Cash, who can
advise us on the position we should take. I would think that if we single
out certain employees to become Enron employees and the remainder stay as
agency employees, this would enhance the legal position of the agency
employees (versus everyone staying as an agency employee). Michelle, can you
help us with this one? Thanks.

Melissa, I also think we should minimize distribution on this discussion . .
.



Enron Europe

From: Melissa Laing @ ECT 08/08/2000 10:57 AM


To: Hoyt Thomas/NA/Enron@Enron
cc: Jeanie Slone/LON/ECT@ECT, Melanie Doyle/LON/ECT@ECT

Subject: Henry Bath LA

Hi Hoyt,

I have today spoken to Ed Dablin regarding Henry Bath LA. We discussed how
the employees seem to feel that they are Enron employees, although they are
infact agency workers. Ed confirmed that Martha and half a dozen other
employees quite clearly should become Enron employees and should get
applicable benefits.

The other employees (who are mainly manual employees) he does not feel should
become Enron employees and should remain as agency staff.

He realises that the original granting of Share Options has slightly "muddied
the water" with regard to whether these employees are employees of Enron or
the agency. He was not involved with the original decision to grant these
employees Share Options.

We discussed the issues (in broad terms, as I could not remember all of the
specific issues) and he is aware that making a limited number of individuals
Enron employees, whilst the others remain agency workers, is not an easy
thing to do.

However, this is his ideal scenario. How viable is it that we can do this
for him?

He also made the point that Martha is the most senior executive in Henry Bath
Inc. and is one of his most valuable employees.

Regards

Melissa